How to Buy Litecoin in Australia | Invest in LTC

Summary: One of the most convenient ways to invest in Litecoin (LTC) in Australia is through reputable and regulated brokers like Plus500 that offers crypto contract for differences (CFDs) which allow you to speculate on the digital currency’s price without actually owning it.

What is Litecoin?

Litecoin (LTC), often referred to as silver in the world of cryptocurrencies, is a peer-to-peer digital currency created by Charlie Lee in 2011. It’s similar to Bitcoin (BTC) in many ways, as it operates on a decentralized blockchain network. However, there are some key differences that set LTC apart:

• Faster transaction confirmation: LTC offers faster transaction confirmation times compared to BTC. This means that transactions are processed more quickly, making it a preferred choice for day-to-day transactions;

• Scrypt algorithm: LTC uses a different hashing algorithm called Scrypt, which is considered to be more memory-intensive and ASIC-resistant compared to BTC’s SHA-256 algorithm;

• Greater coin supply: Litecoin has a larger maximum supply of coins, with a total of 84 million LTC compared to Bitcoin’s 21 million BTC;

• Lower transaction fees: Transaction fees on the LTC network tend to be lower than those on the BTC network.

How to buy Litecoin in Australia: Step-by-step process

With some basic information about LTC, let’s move on to our step-by-step guide on how to buy this cryptocurrency in Australia.

Step 1: Choose a brokerage account

The first step in buying LTC in Australia is to choose a reputable cryptocurrency brokerage. These platforms act as intermediaries, facilitating the buying and selling of cryptocurrencies. When choosing the one for you, you should consider:

• Regulation and compliance;
• Security measures;
• Fees;
• User interface;
• Range of cryptocurrencies.

Where to buy Litecoin

With all this in mind, our go-to platform for buying LTC in Australia is Plus500, which is a well-known brokerage that offers cryptocurrency CFDs (Contracts for Difference).

With Plus500, you can speculate on Litecoin’s price movements without actually owning the underlying asset. But besides crypto CFDs, Plus 500 also offers:

• Variety of cryptocurrency CFDs;
• Fast and reliable order execution;
• No commissions and tight spreads;
• Advanced analytical tools and chart patterns;
• Leverage of up to 1:30;
• Real-time quotes;
• Convenient deposit options via PayPal, Visa, Mastercard, etc.
• Fast and secure withdrawals.

Step 2: Decide on the amount and buy Litecoin

Once you’ve selected a brokerage, you’ll need to create an account and verify your identity. This is a standard procedure to comply with Australian regulations.

After completing the verification process, you can fund your account using Australian Dollars (AUD). The next step is to decide on the amount of LTC you want to purchase. You can either enter a specific amount of AUD you wish to spend or a specific quantity of LTC you want to buy.

Step 3: Review the fees and confirm your order

Before finalizing your purchase, it’s essential to review the transaction fees. Different brokerages may have varying fee structures, including trading fees, spreads, and withdrawal fees. So, ensure you understand these fees to avoid any surprises.

Once you’re satisfied with the terms, you can confirm your order. The brokerage will execute the transaction, and you will soon see the LTC in your account.

How to Buy Litecoin in Australia safely

Now that you have your LTC, here are some trading tips to keep in mind:

• Stay informed: Keep yourself updated on the latest news and developments in the cryptocurrency market. Market sentiment can change rapidly based on news events;

• Diversify your portfolio: Don’t put all your funds into a single cryptocurrency. Diversifying your investments can help spread risk;

• Use risk management: Set stop-loss orders to limit potential losses, especially when trading with leverage;

• Long-term perspective: Consider holding some LTC for the long term. Cryptocurrency markets are volatile, and short-term trading can be risky.

LTC price today

Pros and cons of buying Litecoin in Australia

Before diving into LTC, it’s essential to weigh the pros and cons:

Mistakes to avoid when buying crypto

When buying LTC or any other cryptocurrency, avoid these common mistakes:

• Neglecting security: Always prioritize the security of your cryptocurrency holdings. Use strong passwords, enable 2FA, and consider hardware wallets for long-term storage;

• Ignoring research: Don’t invest in a cryptocurrency without thoroughly researching it. Understand its technology, use case, and potential risks;

• Overtrading: Avoid excessive trading, as it can lead to high transaction fees and potential losses;

• Ignoring taxes: In Australia, cryptocurrency transactions may be subject to taxation. Keep records of your transactions and consult a tax professional for guidance.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy Litecoin in Australia

Is Litecoin legal in Australia?

Yes, owning and trading Litecoin (LTC) is legal in Australia.

Do I need to pay taxes on my Litecoin gains?

Yes, in Australia, cryptocurrency gains are subject to capital gains tax (CGT).

How do I sell Litecoin for Australian Dollars?

To sell LTC, you can use the same brokerage or exchange where you purchased it. Simply create a sell order, and once there’s a buyer, you can withdraw the funds in AUD.

Can I mine Litecoin in Australia?

Yes, you can mine LTC in Australia, but it may require specialized hardware and a good understanding of mining processes.